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<br />WS – Item 8 <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 8 <br /> <br /> <br />Date: April 3, 2023 <br /> <br />To: City Council <br /> <br />From: Michael Grochala, Community Development Director <br /> <br />Re: Housing Maintenance Assistance Program <br /> <br /> <br />Background <br /> <br />In 2004 the City received $225,000 from the Metropolitan Council Local Housing <br />Incentives Account (LHIA) to assist with development of work force housing in the <br />Legacy at Woods Edge development. The funding was provided to the developer in the <br />form of a no-interest loan for construction of the Lakewood Apartment Building. Upon <br />the sale of the building in 2022 the loan was repaid in full. Under the terms of the LHIA <br />agreement, the City can return the money to Metropolitan Council, or use the grant funds <br />on a “revolving” basis to implement projects that would help the City meet its affordable <br />and life-cycle housing goals. <br /> <br />Affordability limits are established annually. The ownership affordability limit is based <br />on a household income of 80% of the area median income. In 2022 the area median <br />income (AMI) for a family of four was $118,200. For owner-occupied housing, the <br />income limit includes principal, interest, property taxes and home insurance. <br /> <br />2022 Home Ownership <br />Family Income <br />Level <br />Affordable Home <br />Price <br />80% AMI ($89,400) $355,600 <br />60% AMI ($70,380) $276,100 <br />50% AMI ($58,650) $227,100 <br />30% AMI ($35,200) $129,100 <br /> <br />The 2023 figures will not be available until May. <br /> <br />The City’s Housing Plan (Chapter 4 of Comprehensive Plan) includes the following <br />goals: <br /> <br />• Improve availability of affordable and life cycle housing <br />• Maintain existing housing stock to ensure a high-quality environment in all <br />residential neighborhoods. <br />